Relocation in 2011

The worldwide economic downturn was a tough time for relocation providers. Not just those in Singapore, but firms around the world, faced a significant reduction in demand. Now, the situation is quickly returning to those pre-recession levels, but that doesn’t mean there aren’t new challenges for relocation experts and serviced apartment operators. The recovery has created a new emphasis on Asia for many multinational businesses and that has meant a surge of key talent movements to and around this region. At the same time, new players in the market has put pressure on prices and margins, forcing established firms to renew their focus on customer service.

For HR, that means bigger, better and cheaper deals are likely to be on the table. But it will also have to do its homework, being careful not to fall for sales pitches that are enthusiastic, but ultimately undeliverable.

A regional market

One of the things exposed by the economic downturn was the fragility of western economies and the strong relative potential on offer in Asia. As the recovery strengthens, many organisations are repositioning themselves to take advantage of the strong prospects here.

Bill Cain, Managing Director of Sante Fe Relocation Services in Singapore, says that new focus has increased the number of relocations taking place. “Many organisations are decentralising away from Europe, the US, and Australia,” he says. “They are sending key decision-making people (to) control the business from here.”

That can often be easier said than done. And HR departments of multinationals looking to bring their staff to Singapore and other hot spots around Asia will typically engage a relocation partner to handle all of the logistics. Good relocation partners typically handle dozens of “full” relocations, or more, for each of their multinational clients over the course of a year. The complete relocation package will include arrangements for visas, tailored home and school searches and all moving services.

The new economic focus on Asia is good news too for serviced apartment providers. They are clamouring to fill the increasing demand and look set to open a large number of new accommodation facilities over the coming few years. Brian Stampe, Senior Manager of Far East Hospitality (Serviced Residences), says that’s particularly true in Singapore. “Singapore continues to enhance its position as a great global city from which companies and businesses can operate effectively from,” he says. “This translates to increased movement of human capital to Singapore as they set up new headquarters to expand their operational framework.”

Competition bites

Increased demand for relocation services in Asia is also bringing in new players to the industry. That’s dampening prices in some areas but also bringing a great deal of product differentiation, as established relocation firms refocus their attention on customer needs.

Certainly, that’s how Sante Fe is looking to tackle 2011. “There is pressure on prices – that’s the business environment in general,” Cain says. “Across the region, the challenge is to be able to continue to add value.”

Cain believes the key will be differentiating services according to each individual customer or organisation. “Every client is unique in their own way,” he says, noting that Sante Fe will look to reinvigorate its service credentials in the face of a more populated market. “We’re aiming to be at the forefront of service excellence.”

Apartments spring up

There’s also plenty of changes in the serviced apartment markets in Singapore and around the Asia region. The increase in demand for relocation services, and accommodation in particular, had been forecast in previous years – and many new buildings and residences are set to be launched in 2011.

Stampe says this is just a small step toward satisfying the need for expatriate housing. “One of the challenges the market faces is the need to rejuvenate our supply of short term to long term housing to ensure we continue to enhance living conditions for the expatriate market,” he points out. “This is an important factor as the market needs to stay relevant in light of the changing needs of expatriates.”

In this way, Singapore is also set to see some major refurbishments and reinventions of existing serviced apartment properties. “At Far East Organisation, we have planned for this with the re-launch of Nassim Regency, a stylish condominium along Napier Road,” he says. “This was renovated to cater to the increase in demand of high quality long term housing by expatriates.”

The company’s Orchard Parksuites residence is also under renovation at the moment. Stampe says it is set to open in the first quarter of 2011, in time for what is typically “peak relocation season” in Singapore.

Other buildings are currently under development, with opening dates set for 2011 right through until 2013.